The company has achieved a notable liquidity position with $764.3 million in cash, which significantly outweighs its $93.9 million in total debt as of 2023Q2.
| Total Current Assets | 1.11B | 1.33B | 1.11B | 563.95M | 274.89M |
| Cash & Short-Term Investments | 930.58M | 1.03B | 930.58M | 399.06M | 54.73M |
| Cash Only | 764.28M | 779.93M | 764.28M | 266.43M | 25.1M |
| Short-Term Investments | 166.3M | 246.19M | 166.3M | 132.63M | 29.63M |
| Accounts Receivable | 32.63M | 185.49M | 63.9M | 58.79M | 115.05M |
| Days Sales Outstanding | 4.48 | 17.84 | 7.57 | 7.48 | 23.86 |
| Inventory | 0 | 6.34M | 0 | 0 | 0 |
| Days Inventory Outstanding | - | 4.21 | - | - | - |
| Other Current Assets | 136.68M | 4.67M | 5.63M | 19K | 29K |
| Total Non-Current Assets | 114.8M | 96.67M | 114.8M | 39.52M | 55.34M |
| Property, Plant & Equipment | 91.42M | 65.46M | 91.42M | 29.09M | 14.09M |
| Fixed Asset Turnover | 51.60x | 57.98x | 33.71x | 98.60x | 124.88x |
| Goodwill | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 33.33M |
| Long-Term Investments | 0 | 9.01M | 0 | 0 | 0 |
| Other Non-Current Assets | 21.3M | 21.36M | 21.3M | 10.43M | 7.91M |
| Total Assets | 1.22B | 1.43B | 1.22B | 603.47M | 330.23M |
| Asset Turnover | 3.80x | 2.66x | 2.52x | 4.75x | 5.33x |
| Asset Growth % | 2818.11% | 16.56% | 102.73% | 82.74% | - |
| Total Current Liabilities | 944.75M | 869.56M | 944.75M | 713.22M | 573.26M |
| Accounts Payable | 71.02M | 62.07M | 62.09M | 45.18M | 74.46M |
| Days Payables Outstanding | 38.66 | 41.17 | 57.89 | 40.34 | 151.9 |
| Short-Term Debt | 0 | 0 | 0 | 207.6M | 0 |
| Deferred Revenue (Current) | 2.02B | 547.48M | 661.61M | 536.43M | 400.93M |
| Other Current Liabilities | 23.94M | 20.77M | 922K | -207.27M | 160K |
| Current Ratio | 1.17x | 1.53x | 1.17x | 0.79x | 0.48x |
| Quick Ratio | 1.17x | 1.52x | 1.17x | 0.79x | 0.48x |
| Cash Conversion Cycle | -34.18 | -19.12 | - | - | - |
| Total Non-Current Liabilities | 52.85M | 39.98M | 52.85M | 679.6M | 36.47M |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 84.11M | 16.99M | 52.84M | 6.57M | 1.94M |
| Deferred Tax Liabilities | 0 | 11.63M | 0 | 0 | 8.17M |
| Other Non-Current Liabilities | -22.52M | 0 | 0 | 664.16M | 0 |
| Total Liabilities | 997.6M | 909.53M | 997.6M | 1.39B | 609.73M |
| Total Debt | 93.93M | 66.09M | 93.93M | 230.49M | 9.07M |
| Net Debt | -670.35M | -713.84M | -670.35M | -35.93M | -16.03M |
| Debt / Equity | 0.42x | 0.13x | 0.42x | - | - |
| Debt / EBITDA | -0.54x | 0.17x | - | - | - |
| Net Debt / EBITDA | 3.87x | -1.87x | - | - | - |
| Interest Coverage | - | - | - | - | - |
| Total Equity | 225.83M | 516.48M | 225.83M | -789.35M | -279.51M |
| Equity Growth % | 326.68% | 128.7% | 128.61% | -182.41% | - |
| Book Value per Share | 3.85 | 9.11 | 6.52 | -14.33 | -5.07 |
| Total Shareholders' Equity | 223.7M | 516.48M | 223.7M | -789.35M | -279.51M |
| Common Stock | 112K | 115K | 112K | 32K | 0 |
| Retained Earnings | -969.69M | -584.16M | -969.69M | -861.15M | 0 |
| Treasury Stock | 0 | -109.26M | 0 | 0 | 0 |
| Accumulated OCI | 22.18M | 17.31M | 22.18M | 1.84M | 0 |
| Minority Interest | 2.13M | 0 | 2.13M | 0 | 0 |
High customer acquisition costs
As reported in financial statements, QuantaSing's equity position shifted from a deficit of $789.3 million in 2022Q4 to a positive $223.7 million by 2023Q2, signaling a significant improvement in the company's net asset position following a period of intense financial volatility and restructuring.
The dramatic swing in equity suggests that the company has successfully navigated a period of severe capital impairment, likely through operational stabilization or capital market activities. Investors should monitor whether this trajectory is sustainable or if it remains sensitive to the high marketing-driven cash burn that characterized earlier periods.
Based on recent SEC filings, QuantaSing's cash and equivalents surged to $764.3 million in 2023Q2, providing a substantial liquidity buffer that significantly exceeds the $93.9 million in total debt, thereby mitigating immediate solvency concerns despite the company's reliance on high-cost customer acquisition strategies.
The current ratio of 1.17 indicates that the company maintains sufficient short-term assets to cover its immediate obligations, including the substantial deferred revenue liabilities. This liquidity profile appears robust enough to support ongoing marketing efforts, though the reliance on upfront payments necessitates careful management of refund liabilities.
According to the provided balance sheet data, deferred revenue stood at $661.6 million as of 2023Q2, representing a critical liability that reflects the company's reliance on upfront course payments to fund its current operations and future service delivery requirements.
This large deferred revenue balance serves as a leading indicator of future service obligations, implying that a significant portion of the company's cash is effectively 'pre-earned' and subject to performance risk. Analysts should scrutinize the churn rates and refund trends, as any decline in student retention could lead to a rapid reversal of these cash inflows.
As evidenced by the $969.7 million in accumulated losses reported in 2023Q2, the company's historical profitability remains deeply negative, suggesting that the recent improvement in equity is driven more by capital injections than by the organic accumulation of retained earnings from core business operations.
The persistent negative retained earnings highlight the structural challenge of achieving long-term profitability in a model where customer acquisition costs frequently outpace lifetime value. This discrepancy between the strengthening balance sheet and the underlying earnings history warrants caution regarding the company's long-term economic moat.
Quick answers to the most common questions about buying QSG stock.
As of 2024, QuantaSing Group Ltd (QSG) had total assets of $1.43B including $1.33B in current assets.
QuantaSing Group Ltd (QSG) carries total debt of $66.1M, offset by $1.03B in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
QuantaSing Group Ltd (QSG) has total shareholders' equity (book value) of $516.5M ($9.11 book value per share). Book value represents the net worth of the company belonging to common stock holders.
QuantaSing Group Ltd (QSG) reported a current ratio of 1.53x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.